YOUR COMPANY IS LOOKING FOR SOLUTIONS FOR BUSINESS FUNDING
HOW TO FINANCE YOUR BUSINESS NEEDS FOR GROWTH POTENTIAL
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
"Unlock the door to your business's potential—discover how navigating Canada's funding landscape can transform financial hurdles into stepping stones for success."
7 Park Avenue Financial originates business funding for Canadian companies – We offer financing solutions that solve the issue of cash flow and working capital and accessing a business loan – Save time, and focus on profits and business opportunities
Innovative Business Funding: Unlocking Canadian Business Potential
INTRODUCTION
Business financing options in Canada. It's challenging to learn to love something that always seems so elusive. Is there a checklist we can employ to ensure finance funding strategies can adequately be implemented? We think there is, so let's dig in.
Securing the proper funding is essential to turning companies into thriving businesses. By exploring each funding source's unique advantages and considerations, the 7 Park Avenue Financial team will help you make financing choices that match your long-term business objectives.
Ensure you understand your current overall capital/ financing structure—that's important as a starter. Of course, this will determine the debt your firm can or can’t take on.
SHOULD YOU ADD DEBT TO THE BALANCE SHEET OR FOCUS ON ASSET TURNOVER AND MONETIZATION
Any sort of intermediate or long-term debt affects how banks or other commercial lenders view your firm in the context of additional credit extension for small business loans.
In some cases, a more favourable solution might be to monetize current assets such as receivables and inventory. These don't add debt to the balance sheet; they enhance working capital and cash flow. Have a solid business plan in place when searching for any financing of significance -
At 7 Park Avenue Financial, we prepare business plans that meet and exceed the requirements of banks and lenders - and that work comes at a very reasonable cost.
CANADIAN SMALL BUSINESS FINANCING OPTIONS
Companies experiencing high growth or having financing challenges should properly investigate any one or a combination of the following funding solutions available from traditional lenders or the new alternative financing landscape -
A/R Financing
Inventory Loans
Access to Canadian bank loans & credit/line of credit /term loans
Non bank asset based lines of credit
SR&ED Tax credit financing r&d product development
Equipment / fixed asset financing
Cash flow loans
Royalty finance solutions
Purchase Order Financing
Short-Term Working Capital Loans/ Merchant Advance Good credit by the owner and a positive credit score is required!
Securitization
Suppose your firm has access to what we can call traditional capital. In that case, you need to be in a position to understand current interest rate trends in the context of Canadian commercial borrowing.
Another key checklist point is to understand and manage your overall corporate objectives. Are they focused on cash flow and working capital or building assets and infrastructure to enhance long-term growth?
WATCH OUT FOR ACCOUNTING AND TAX IMPLICATIONS
Remember also that depending on the type of financing you undertake, there are always some tax ramifications, which should be understood when talking to your accountants about pros/cons, future liabilities, etc. At 7 Park Avenue Financial, we encourage our clients to get specific advice in those key areas.
PROFITABILITY IS KEY BUT NOT ALWAYS ESSENTIAL FOR VARIOUS TYPES OF FINANCING
Your company's overall profitability will also affect the financing you can undertake. If you don't have current ongoing profitability, in some cases, you have access to business credit - however, it will be at a cost. A typical situation might be a firm that is in turnaround mode.
WHAT STAGE OF GROWTH IS YOUR BUSINESS IN
If your firm is in growth mode, you must look at the intermediate term and determine the amount of working capital you need. All companies are in different stages—from start-up to mature—and working capital levels and access to them differ.
IS ADDITIONAL EQUITY NECESSARY
A key factor that many clients we talk to seem to be forgotten occasionally is that you need to plan for future cash fall shortages.
Here, the adage of getting financing in place when you don't need it is essential. In some cases, it might, but not always, make sense to consider more equity financing from owners. Dangers of additional equity financing include certain restrictions that will affect how the company can operate in the future.
Many early-stage and even more established firms choose to explore equity via angel investors, family and friends funding, venture capital, etc. Our clients have often found that is a long and painful road!
Those choosing the friends and family route mentioned above often find it's not great to mix family and business in this manner. Equity financing is the most expensive form of financing, and higher interest rates on debt solutions should not deter business people from exploring debt options. Those venture capitalists can be a demanding bunch! Business owners and their advisors should carefully examine debt and equity.
KEY TAKEAWAYS
CONCLUSION
If any of your financing needs are affected by what we could call ' external' forces, you need to focus hard on stability and reliable financing.
In some cases, firms with challenges can ' refinance the company - i.e. lengthen the term of financing in place, etc.
So, are business financing options and finance funding your ' elusive butterfly’? Remember that proper planning helps eliminate the problems small businesses face with financing success and will help you achieve the amount of money and funding your company or project needs.
Call 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with your needs.
FAQ: FREQUENTLY ASKED QUESTIONS / PEOPLE ALSO ASK / MORE INFORMATION
How do government grants differ from loans in business funding?
Government grants and some programs are funds without repayment required, often aimed at specific projects or sectors. In contrast, loans must be repaid with interest from traditional financial institutions such as banks, which tend to lend to established businesses.
What makes venture capital a unique source of business funding?
Venture capital provides financial backing and strategic support, often in exchange for equity in high-growth potential companies.
Why might an entrepreneur prefer equity financing over debt financing?
Equity financing doesn’t require repayment, making it attractive for businesses that want to conserve cash flow while offering a stake in the company's future success.
Can angel investors offer more than just financial support to startups?
As a funding source, Angel investors can often provide valuable mentorship, industry connections, business advice, and financial investment to the business owner. Some entrepreneurs seek assistance from family members to finance their purchases.
What role do business funding sources play in the growth of a Canadian startup?
They provide the essential capital needed to scale the operations of a private company, research and development, and market expansion, which is critical for startup success.
Are there any funding options for social enterprises in Canada?
Social enterprises and other new business owners can access specific grants, impact investments, and social finance programs to support businesses with a social or environmental mission.
What are the risks associated with debt financing?
Debt financing via a bank loan or a commercial non-bank loan requires regular repayments with interest, which can strain cash flow. Lenders may require collateral, which can put assets at risk if repayments cannot be met.
How can a business improve its chances of securing funding?
A robust business plan, precise financial projections, a strong management team, and evidence of market demand can significantly enhance a business’s funding prospects.
What is the primary difference between secured and unsecured loans?
Secured loans require collateral, such as property or equipment, which the lender can claim if the loan isn't repaid. In contrast, unsecured loans do not require collateral but often have higher interest rates.
Are there specific funding sources for technology startups in Canada?
Yes, technology startups / early stage businesses in Canada can access venture capital firms specializing in tech, government programs and small business grants aimed at innovation, and specific tech incubators and accelerators that provide funding and support when qualifying for traditional bank loans is not possible. Some grants require a personal investment.
The Canada Small Business Financing Program and Canada's SR&ED tax credit program are the most popular and widely used programs in SME small business funding for an established or new business.
